South Korea says it has no written pact on US trade deal
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Trade Minister Yeo Han-koo said the two sides had an oral negotiation because of time constraints.
PHOTO: REUTERS
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SEOUL - There is no written agreement yet on a trade deal between South Korea and the United States
The US tariff on South Korean imports will be 15 per cent, Mr Trump said after meeting South Korean ministers on July 30, down from a threatened 25 per cent, but the US gave scarce details, apart from social media posts by him and Commerce Secretary Howard Lutnick.
Speaking to reporters as he arrived home from a visit to Washington, Trade Minister Yeo Han-koo said the two sides had an oral negotiation because of time constraints.
"What we felt during this negotiation is that the US trade environment is fundamentally changing. This is completely different from the first Trump term," Mr Yeo said of the deal easing tension with a top-10 trading partner and key Asian ally.
"I think we are entering a new normal era. So, although we have overcome this crisis, we cannot be relieved, because we do not know when we will face pressure from tariffs or non-tariff measures again."
The White House, which issued fact sheets on trade deals with Japan and the European Union a day after striking them, has not yet released a separate one on the pact with South Korea.
Mr Trump said South Korea would invest US$350 billion (S$454 billion) in the US in projects “owned and controlled by the United States” and selected by him.
Mr Lutnick said 90 per cent of profits from the investments would go to the American people, while White House Press Secretary Karoline Leavitt said they would go to the US government to help repay debt.
More discussions were necessary on the investment fund’s profit structure, said Industry Minister Kim Jung-kwan, who returned with Mr Yeo.
Finance Minister Koo Yun-cheol, also one of the negotiation team, said detailed plans for the US$350 billion investment would need be established.
The July 30 deal did not tackle most non-tariff barriers discussed during working-level talks, as well as security and foreign exchange aspects. REUTERS
